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THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Date:
GAIN Report Number:
Approved By:
Prepared By:
Report Highlights:
On July 1, 2011, Canada implemented a federal mandate of 2 percent renewable content in the national
distillate pool. Proposed regulations, published in the Canada Gazette on May 18, 2013, will extend the
Atlantic exemption period until June 30, 2013, and permanently exempt diesel heating oil from the 2
percent renewable content requirement. These regulations are in addition to the mandate of 5 percent
renewable content in the national gasoline pool. As the Canadian biofuels industry is continuing
compliance preparation, ethanol and biodiesel production has grown in recent years. Ethanol
production in 2013 is estimated to increase about 4 percent from 2012 levels, and biodiesel production
is estimated to more than double due to new production facilities. At this time, the Canadian biofuels
industry remains below Post’s estimates to meet the federal standards, and limited production suggests
that Canada will not soon become a major player in the global ethanol market.
Brent Evans
Robin Gray
2013
Biofuels Annual
Canada
CA13034
6/28/2013
Required Report - public distribution
Canada Biofuels Annual 2013
2
Contents I. Executive Summary ................................................................................................................... 3
II. Policy and Programs.................................................................................................................. 4
Context: Canada’s Overall Energy Situation ........................................................................ 4
A. National Biofuels Mandate ................................................................................................ 6
B. Federal Programs to Encourage the Development of a Canadian Renewable Fuels Industry
................................................................................................................................................. 7
C. Provincial Mandates and Programs to Encourage Renewable Fuels Industry Development............................................................................................................................................... 10
Cap-And-Trade Research ..................................................................................................... 11
D. Factors Affecting the Long-term Viability of a Canadian Biofuel Industry ................ 11
III. Ethanol .................................................................................................................................... 13
A. Production ...................................................................................................................... 14
B. Impacts of Ethanol Production on Feedstock Markets .................................................. 15
i. Ethanol Produced from Corn.......................................................................................... 15
ii. Ethanol Produced from Wheat ....................................................................................... 15
C. Consumption................................................................................................................... 16
D. Trade .............................................................................................................................. 16
E. Ending Stocks ................................................................................................................. 17
IV. Biodiesel ................................................................................................................................. 17
A. Biodiesel Production ...................................................................................................... 19
B. Impacts of Biodiesel Production on Feedstock Markets ................................................ 20
C. Consumption................................................................................................................... 20
D. Biodiesel Trade .............................................................................................................. 21
E. Ending Stocks ................................................................................................................. 22
V. Advanced Biofuels ................................................................................................................. 22
VI. Biomass for Heat and Power .................................................................................................. 22
A. Wood Pellets .................................................................................................................... 23
B. Fuels Produced from Other Biomass .............................................................................. 24
Appendix I: Transport Fuel and Energy Consumption ................................................................. 26
Appendix II: Provincial Mandates, Policies, Tax Exemptions, Incentives, and Conditions ........ 28
A. Alberta Biofuel Policies ................................................................................................. 28
B. British Columbia Biofuel Policies .................................................................................. 30
C. Manitoba Biofuel Policies .............................................................................................. 32
D. Ontario Biofuel Policies ................................................................................................. 33
E. Quebec Biofuel Policies ................................................................................................. 35
F. Saskatchewan Biofuel Policies ....................................................................................... 36
G. Biofuel Policies in Atlantic Canada ............................................................................... 38
Appendix III: Biofuel Plants: Existing, Expanding, Under Construction .................................... 40
Ethanol Production Plants .................................................................................................... 40
Biodiesel Production Plants ................................................................................................. 41
Canada Biofuels Annual 2013
3
I. Executive Summary
Since December 15, 2010, Canada has had a federal mandate requiring 5 percent of the national
gasoline pool to be renewable (ethanol). In addition, many provinces have equivalent or higher
provincial mandates, including a 5 percent renewable content mandate in Ontario, 7.5 percent in
Saskatchewan, and 8.5 percent in Manitoba. In 2013, these provinces alone are expected to make up
about 86 percent of Canada’s overall ethanol production. British Columbia and Alberta account for
approximately a quarter of net national gasoline sales, but are expected to make up only 4 percent of
Canada’s overall ethanol production in 2013.
Ethanol production in Canada will increase in 2013 to an expected 1,979 million liters, slightly up from
2012, and is forecast to grow further to 2,006 million liters in 2014. Due to the fact that this does not
surpass the federal content requirement, which Post estimates as 2,269 million liters for 2013 and 2014,
imports are expected to continue to increase to fulfill federal and provincial renewable content
requirements. The national fuel ethanol production capacity for 2013 and 2014 is estimated at 1,802
million liters, and national capacity use is estimated at 99 percent in 2013, up from 96 percent in 2012
and only 75 percent in 2011. Primary feedstocks remain corn and wheat. However, small production
levels of cellulosic ethanol from wood waste and municipal solid waste exist and are being developed
by Enerkem. Atlantic Canada is also looking into future possibilities of cellulosic ethanol production,
details of which will be announced in the near future.
Canada’s limited biofuels production, both in the short and medium term, suggests that Canada will not
soon become a major player in the global ethanol market. While domestic supply in Canada limits the
amount of trade, there is an increasing amount of trade in the co-products of ethanol production. Cross-
border trade between Canada and the United States in biofuels reflects the most economical trade
corridors.
On July 1, 2011, the federal government implemented a federal mandate of two percent renewable
content in diesel fuel and heating oil. The eastern part of Canada was initially given an implementation
exemption until December 31, 2012, but on May 18, 2013, regulations Amending the Renewable Fuels
Regulations were released, extending the exemption until June 30, 2013, as well as providing a
permanent exemption from the mandate for heating oils. Some provincial mandates for renewable
content are also in place, including a 4 percent requirement in British Columbia and 2 percent
requirements in Alberta, Saskatchewan, and Manitoba. Ontario will soon be undertaking consultations
regarding the creation of a mandate. At this time, Canada’s biodiesel production, at an estimated 471
million liters in 2013, remains below Post’s estimation of approximately 568 million liters needed to
meet the federal standard (excluding heating oil) if it was in full effect in 2013. However, biodiesel
production, due to the completion of new facilities, is expected to reach 646 million liters in 2014,
surpassing production needed to supply the federal requirement. While production from soybean as a
feedstock is expected to take place, primary feedstocks remain canola, animal fat, and recycled oils.
Canola feedstock is expected to account for nearly 40 percent of Canadian biodiesel production by the
end of 2014.
Canada Biofuels Annual 2013
4
II. Policy and Programs
Context: Canada’s Overall Energy Situation
Unlike the United States, energy security is not a factor behind the recent and projected growth in
Canada’s renewable fuel industry. According to the U.S. Energy Information Administration (EIA),
Canada has the world’s third largest proven oil reserves (estimated at 180 billion barrels), behind
Venezuela and Saudi Arabia. Canada is one of the world’s top ten oil exporters, and is one of the
world’s five largest energy producers.
While Canada is a significant producer of oil, it also ranks among the world’s top ten consumers of
petroleum. Between the years of 2006-2011 transportation accounted for about one-third of energy
consumption (see Appendix I, Table 9), and motor gasoline and diesel fuel oil accounted for
approximately 85 percent of the energy used (see Appendix I, Table 10). A closer look at the use of
energy within the transportation industry shows that on average between the years 2006-2010 (most
recent available data), the share of energy used for freight averaged a little more than 41 percent per
year and the share of energy used for passenger transportation averaged a little under 55 percent (see
Appendix I, Table 11).
A breakdown of energy use by fuel type reveals that gasoline and diesel fuel account for an average of
52 percent and 40 percent, respectively, of the fuel type used in the period 2006-2011 and now dominate
as the transportation sector’s main energy sources. Table 1 below illustrates current and past fuel
consumption for 2006 through a forecasted 2014. Note that this excludes industrial power generation
fuel use due to lack of availability. Table 2 illustrates Post’s projections through 2023.
Table 1
Canada Biofuels Annual 2013
5
Current and Past Fuel Use (million liters) (a)
Calendar Year 2006 2007 2008 2009 2010 2011 2012
2013
(e)
2014
(f)
Gasoline Total
(c)
38,65
4
39,63
5
39,14
9
39,70
8
40,10
1
40,21
7
42,79
9 45,380 45,380
Diesel Total (d)
30,04
0
31,58
0
30,78
8
28,33
0
30,51
9
31,45
0
30,95
2 31,073 31,193
On-road
16,61
2
17,13
3
16,55
5
16,18
8
16,77
9
17,79
7
17,29
4 17,422 17,551
Agriculture 2,893 3,108 3,171 2,428 2,901 2,909 2,917 2,925 2,933
Construction
/mining 3,484 3,823 3,955 3,795 4,551 4,553 4,764 4,975 5,185
Shipping/rail 3,647 3,735 3,781 2,635 3,231 3,178 3,058 2,937 2,817
Industry (g) 146 209 125 132 125 111 126 127 127
Heating (h) 3,258 3,572 3,201 3,152 2,932 2,901 2,794 2,687 2,580
Jet Fuel Total
(i) 7,148 7,218 6,803 6,221 6,480 6,910 6,748 6,806 6,864
Total Fuel
Markets
75,84
2
78,43
3
76,74
0
74,25
9
77,10
0
78,57
7
80,50
0
83,259 83,437
Notes & Sources
(a) 2006-2011 consumption based on data available on Statistics Canada’s website and Natural Resources
Canada’s website
(b) 2012 data based on trend
(c) 2013-2014 gasoline consumption based on data from Hart Energy’s World Refining & Fuels Service
(WRFS)
(d) 2011-2014 consumption for all non-gasoline fuels based on trend
(e) Estimated
(f) Forecasted
(g) Industrial power generation fuel use available and projected from data from Statistics Canada (CANSIM
Table 127-0004)
(h) Detailed data only available for residential sector
(i) Assumes use of Jet Fuel A and A-1 (source: Air BP’s Handbook of Products) and excludes aviation
gasoline
Canada Biofuels Annual 2013
6
Table 2
Fuel Use Projections (million liters)
Calendar Year 2015 2016 2017 2018 2019 2020 2021 2022 2023
Gasoline Total
(a)
45,26
0
44,92
4
44,58
8
44,25
2
43,91
6
43,58
0
43,10
4
42,62
8
42,15
2
Diesel Total
31,31
3
31,43
3
31,55
4
31,67
3
31,79
4
31,91
4
32,03
4
32,15
4
32,27
5
On-road
17,67
9
17,80
7
17,93
6
18,06
4
18,19
3
18,32
1
18,45
0
18,57
8
18,70
7
Agriculture 2,941 2,949 2,957 2,965 2,973 2,981 2,989 2,997 3,005
Construction
/mining 5,396 5,606 5,817 6,028 6,238 6,449 6,659 6,870 7,081
Shipping/rail 2,697 2,577 2,457 2,336 2,216 2,096 1,976 1,856 1,735
Industry (c) 128 128 129 129 130 130 131 131 132
Heating (d) 2,473 2,365 2,258 2,151 2,044 1,937 1,829 1,722 1,615
Jet Fuel Total (e) 6,922 6,980 7,038 7,096 7,154 7,212 7,270 7,328 7,386
Total Fuel
Markets
83,49
6
83,33
7
83,18
0
83,02
2
82,86
4
82,70
6
82,40
8
82,11
0
81,81
3
Notes & Sources
(a) Gasoline consumption based on data from Hart Energy’s World Refining & Fuels Service (WRFS)
(b) Consumption for all non-gasoline fuels based on trend from Table 1
(c) Industrial power generation fuel use projected from Statistics Canada (CANSIM Table 127-0004)
(d) Detailed data only available for residential sector
(e) Assumes use of Jet Fuel A and A-1 (source: Air BP’s Handbook of Products) and excludes aviation
gasoline
A. National Biofuels Mandate
Canada’s government announced a renewable fuels strategy in late 2006, including a national renewable
fuels mandate. Since that time, there have been legislative amendments and federal and provincial
incentive programs that have encouraged the development of a Canadian renewable fuels industry. On
August 23, 2010, the finalized (official) federal Renewable Fuel Regulations, came into force. The
regulations set the five percent renewable fuel mandate for the national gasoline pool to come into effect
on December 15, 2010 (full regulations). The commencement date for the mandated average 2 percent
renewable fuel content in diesel fuel and heating distillate oil, which is also a provision of the federal
Renewable Fuel Regulations, was omitted. The reason for this omission was that the demonstration of
technical feasibility under the range of Canadian conditions had not yet been completed. On June 29,
2011, the federal government announced it was moving ahead with a July 1, 2011 implementation date
for a federal mandate of two percent of renewable content in diesel fuel and heating oil. A permanent
Canada Biofuels Annual 2013
7
exemption has been provided for renewable content in diesel fuel and heating distillate oil sold in
Newfoundland and Labrador to address the logistic challenges of blending biodiesel in this region.
Temporary exemptions for renewable content in diesel fuel and heating distillate oil sold in Quebec and
all Atlantic provinces were provided until December, 31, 2012, to give eastern Canada time to install
biodiesel blending infrastructure. On May 18, 2013, the Regulations Amending the Renewable Fuels
Regulations, were published in the Canada Gazette. The amendments extended the Maritime provincial
exemption from the 2 percent renewable diesel requirement, increasing it to end on June 30, 2013. The
amendments also created a permanent national exemption for the 2 percent renewable content
requirement for heating oil. The Renewable Fuels Regulations are annexed to the Canadian
Environmental Protection Act, 1999.
The overall structure is similar to the Renewable Fuel Standard in the United States, with the point of
compliance at the point of production or importation. The objective of the regulations is to reduce green
house gas (GHG) emissions by mandating renewable fuel content based on the gasoline volume, as well
as diesel fuel and heating distillate oil volumes, and fighting climate change. The regulations are
estimated to result in an incremental reduction of GHG emissions of about one ton of carbon dioxide
equivalent (1 MT CO2) per year over and above the reductions attributable to existing provincial
requirements already in place. The regulations fulfill the commitments under the federal government`s
Renewable Fuels Strategy of reducing GHG emissions from liquid petroleum fuels and creating a
demand for renewable fuels in Canada.
B. Federal Programs to Encourage the Development of a Canadian Renewable Fuels Industry
With its announcement of a renewable fuels strategy, the Canadian government launched several
programs designed to promote the development of a domestic renewable fuels industry. Several of the
programs are designed to encourage agricultural producer involvement in renewable fuels and the usage
of agricultural biomass to produce bioethanol. Many federal programs which were announced as part of
the renewable fuel strategy expired at the end of March 31, 2011. The federal government has not, as of
yet, announced any future measures to replace the programs which have expired.
Table 3
Federal Programs to Promote a Domestic Renewable Fuels Industry
Canada Biofuels Annual 2013
8
Program
Name
Budget Allocated
/ Administering
Ministry or
Agency
Type of Program Program Design / Duration
Renewable
Fuels
Regulations
Environment
Canada; RFR are
annexed to the
Environment
Canada Act, 1999.
Federal requirement
for 5 percent
renewable content in
the Canadian gasoline
pool and a 2 percent
renewable content in
the distillate pool
(excluding heating
oil).
Renewable fuel mandate for
gasoline pool came into effect on
December 15, 2010. Mandate for
the distillate pool came into effect
July 1, 2011 and must be met by
June 30, 2013 in eastern Canada.
EcoEnergy for
Biofuels
Overview
C$1.5 billion;
Administered by
Natural Resources
Canada.
Production incentive
program (subsidy);
production capacity
building.
Provides incentive rates of up to
$0.10/liter (L) for renewable
alternatives to gasoline and
$0.26/L for renewable
alternatives to diesel for the first
three years, declining in the 6
years thereafter; program runs
April, 2008 - March 31, 2017.
The final round of funding has
closed.
ecoAgriculture
Biofuels Capital
Initiative
C$200 million;
Administered by
Agriculture and
Agri-Food
Canada.
Loan (repayable
contributions).
Encourages producer
equity/ownership in bio-fuel
facilities. The program helped
fund projects that use agricultural
feedstock to produce bio-fuels
and requires agricultural producer
equity investments of 5 percent to
meet the eligibility requirements.
The funding increased as
producer investment increased,
however a contribution cap of
C$25 million applied; program
was extended from March 31,
2011 to September 30, 2012 but
is now expired.
Table 3 continues on next page…
Table 3 continued from previous page
Canada Biofuels Annual 2013
9
Federal Programs to Promote a Domestic Renewable Fuels Industry
Program Name
Budget Allocated
/ Administering
Ministry or
Agency
Type of
Program Program Design / Duration
Agricultural
Bio-products
Innovation
Program (ABIP)
C$145 million;
Administered by
Agriculture and
Agri-food Canada.
Grants. Sought to mobilize research networks
that conduct scientific research projects
with a specific focus on developing
effective and efficient technologies for
an agricultural biomass conversion;
evolve beyond bio-fuels production to a
sustainable, bio-based economy.
Program has expired.
Agri-
Opportunities
Program
C$134 million;
Administered by
Agriculture and
Agri-Food
Canada.
Loans
(repayable
contributions).
To accelerate the commercialization of
new agricultural products, processes or
services that are currently not produced
or commercially available in Canada
and that are ready to be delivered to the
marketplace for the United States on
projects geared to new agri-food,
agriculture or bio-products; program
closed on March 31, 2011.
Table 3 continues on next page…
Table 3 continued from previous page
Canada Biofuels Annual 2013
10
Federal Programs to Promote a Domestic Renewable Fuels Industry
Program
Name
Budget Allocated /
Administering
Ministry or Agency
Type of
Program Program Design / Duration
NextGen
Biofuels Fund
C$500 million;
Administered by
Sustainable
Development
Technology Canada.
Loans (repayable
contributions).
To increase production capacity of
2nd generation bio-fuels; to spur
investment with the private sector in
establishing large-scale facilities for
the production of next-generation
renewable fuels, to address the gap
between demonstration and
commercialization; program closed
March 31, 2011.
Biofuels
Opportunities
for Producers
Initiative
C$20 million;
Administered by
Agriculture and Agri-
food Canada; funding
delivered through
regional industry
councils.
Direct payment,
encourage
producer
ownership /
involvement.
Provides financial assistance to
develop bio-fuel feasibility studies
(suitability of bio-fuel production in
local community) and business
plans; funding was available for
projects with greater than one-third
producer ownership; program
closed on March 31, 2008.
C. Provincial Mandates and Programs to Encourage Renewable Fuels Industry Development
Provinces have led the way in developing mandates on renewable fuel contents. However,
inconsistencies in provincial requirements may frustrate the flow of biofuel trade within Canada. There
is concern that, with each provincial government implementing its own complex production and/or
consumption incentives with differences in eligibility and duration, there may be barriers to trade and
production in areas not well suited to bioethanol production. Canada’s refineries are mostly in western
Canada (Alberta) and on the east coast (Newfoundland and Labrador), while most gasoline is used in
central Canada (Quebec and Ontario). The federal government has made note of these barriers and sees
the federal mandate as a means to work with provinces to harmonize provincial mandates to eliminate
inter-provincial trade barriers. However, given the lead provinces have to develop provincial
regulations, the ability of the federal government to prevent barriers and uneconomic production is
unclear.
Canada Biofuels Annual 2013
11
Several provinces have implemented provincial mandates on the amount of bioethanol required in the
gasoline pool. Certain provinces have also brought in legislation and regulations that have resulted in a
renewable fuel standard for diesel fuel coming into force ahead of the federal biodiesel mandate. Table
4 summarizes the incentive measures that are currently in effect, and Appendix II provides detailed
information:
Cap-And-Trade Research
Provinces have also taken the lead in cap and trade initiatives. In Alberta, a Green Fund and an Offset
System already exists to allow large emitters to purchase carbon credits from farmers, and a law enacted
in Saskatchewan in late April 2010 (The Environmental Management and Protection Act 2010) would
allow the purchase of carbon credits from farmers within the province. Provincial and state governments
in Ontario, Quebec, Manitoba, British Columbia, and California have discussed a protocol under the
Western Climate Initiative (WCI). Quebec and California officially implemented the WCI’s cap-and-
trade regulations on January 1, 2012, and carbon emitters were given until January 1, 2013 to make
necessary adjustments. British Columbia, Ontario, and Manitoba have not yet named a start date for
implementation but previously mentioned joining after the program starts.
D. Factors Affecting the Long-term Viability of a Canadian Biofuel Industry
The long-term viability of producing biofuels in Canada will depend on a multitude of factors including
federal/provincial regulations and implementation, plant size, production types, co-products, feedstock
costs, energy prices, and production/consumption incentives. The required increase in biofuel
production set out by the federal mandate will necessitate a buildup of infrastructure to support the
industry.
More detailed trade statistics are needed to measure the development of the biofuels market and the
markets for the co-products. Canada’s limited production capacity, both in the short and medium term,
suggest that Canada will not soon be a significant player in the global bioethanol market. While the
Table 4
Renewable Fuels Standards, by Province
Renewable Content
Province Gasoline (ethanol) Distillate (biodiesel)
British Columbia 5% 4%
Alberta 5% 2%
Saskatchewan 7.5% 2%
Manitoba 8.5% 2%
Ontario 5% In discussion*
Source- Canadian Renewable Fuels Association
*See Appendix II, Ontario Biofuel Policies
Canada Biofuels Annual 2013
12
possibility of increased bioethanol trade, especially between the northwest United States and Western
Canada (wheat-bioethanol to the United States and corn-based bioethanol to Canada), is unlikely to
develop quickly, there is an increasing amount of trade in the co-products of bioethanol production,
such as distiller’s dried grains (DDGs).
Canada Biofuels Annual 2013
13
III. Ethanol
Note: This section refers only to conventional/first generation biofuels.
Table 5
Ethanol Used as Fuel and Other Industrial Chemicals (Million Liters)
Calendar Year 2006 2007 2008 2009 2010 2011 2012
2013
(e)
2014
(f)
Beginning Stocks 577 23 149 178 171 216 446 787 893
Fuel Begin Stocks
Production (a) 312 740 950 1,071 1,346 1,505 1,902 1,979 2,006
Fuel Production 212 640 850 951 1,196 1,345 1,725 1,785 1,795
Imports (b) 101 554 595 297 554 1,008 1,087 1,144 1,216
Fuel Imports 84 478 530 269 502 926 1,005 1,067 1,134
Exports (b) 57 59 55 75 94 81 62 47 31
Fuel Exports 39 51 49 67 84 72 56 42 28
Consumption (c) 910 1,090 1,460 1,600 1,820 2,203 2,586 2,970 2,970
Fuel
Consumption 760 940 1,300 1,450 1,650 2,023 2,396 2,770 2,770
Ending Stocks (d) 23 149 178 171 216 446 787 893 1,114
Fuel Ending
Stocks
Production Capacity (Fuel Ethanol Only)
Number of
Refineries 10 12 13 14 15 14 15 15
Nameplate
Capacity 340 850 1,135 1,265 1,590 1,790 1,791 1,802 1,802
Capacity Use (%) 62% 75% 75% 75% 75% 75% 96% 99% 100%
Co-product Production (1,000 MT)
Distiller Dried
Grains (DDGs)
736 923 1,037 1,329 1,375 1,383
Corn Oil 46 63 74 96 99 99
Feedstock Use (1,000 MT)
Corn 1,582 2,180 2,543 3,307 3,422 3,422
Wheat 770 770 770 940 972 997
Table 4 continues on next page…
Market Penetration (Million Liters)
Canada Biofuels Annual 2013
14
Fuel Ethanol 760 940 1,300 1,450 1,650 2,023 2,396 2,770 2,770
Gasoline
38,65
4
39,63
5
39,14
9
39,70
8
40,10
1
40,21
7
42,79
9 45,380 45,380
Blend Rate (%) 2.0% 2.4% 3.3% 3.7% 4.1% 5.0% 5.6% 6.1% 6.1%
(a) 2006-2010 Production data based on information from F.O.Licht. 2011-2014 Fuel ethanol production based on data from Canadian Renewable Fuels Association along with industry discussion, and overall ethanol production based on fuel ethanol:all ethanol ratio from 2006-2010.
(b) Trade data based on information from F.O.Licht and the Global Trade Atlas. Ethanol is harmonized under HS code 2207.10 and 2207.20. GTA reports Canadian ethanol trade as LPA, and no official statistics are available in liters. Fuel ethanol proportion of trade based on proportions of fuel ethanol in consumption and production.
(c) Consumption data based on information from F.O.Licht, Statistics Canada, and federal/provincial Renewable Fuel Standards.
(d) Ending stocks only available for 2006-2010 from F.O.Licht. Stocks for all other years are based on calculations of Canadian trade balances.
(e) Estimated (f) Forecasted
A. Production
Bioethanol production in Canada will increase by approximately 4 percent in 2013, due in part to a new
plant, which came online this past January (Growing Power Hairy Hill, see Table 22, Appendix III).
Ethanol production is estimated to increase to 1,979 million liters, up from the estimated 1,902 million
liters in 2012; more specifically, fuel ethanol production is estimated to increase to 1,785 million liters
in 2013, up from 1,725 million liters in 2012. Production is forecast to grow slightly further to 2,006
million liters in 2014, due to plants running at a higher percentage of nameplate capacity. Factors most
affecting changes in production will include gasoline prices, technological improvements and the impact
of federal and provincial mandates.
In 2013, it is estimated that 78 percent of the domestic production of domestic ethanol will be derived
from corn, and 21 percent will be derived from wheat. Post forecasts that this will likely remain
relatively stable throughout 2014, but there is possibility for further growth of corn as a feedstock; some
plants are converting from wheat to corn as a feedstock due to the lower price and higher availability.
Overall, Canada’s limited biofuel production capacity, both in the short and medium term, suggests that
Canada’s entry into the global bioethanol market is still quite distant.
In 2013, Ontario alone is estimated to account for 58 percent of current domestic bioethanol production
capacity. Saskatchewan is estimated to account for 19 percent, Quebec is estimated to account for 10
percent, and Alberta and Manitoba combined are estimated to account for 12.7 percent.
While the federal and provincial programs have been designed to encourage bioethanol plants with
greater agricultural producer/rural community equity or investment, Canadian bioethanol is produced by
companies that range from (a) energy companies and energy marketers, to (b) companies which focus
on grain-based bioethanol production that often have some degree of producer equity/investment, to (c)
co-operatives, to (d) companies focused on a range of activities such as grains, or other sources of
renewable fuels. To date, multinationals have not expressed interest in Canadian produced bioethanol,
seeing Canada primarily as a market for U.S.–produced bioethanol. This is unlikely to change in the
Canada Biofuels Annual 2013
15
short to medium term as Canada is still working towards building enough production capacity to meet
its own domestic mandates.
B. Impacts of Ethanol Production on Feedstock Markets
Corn and wheat are the main feedstock for bioethanol production in Canada and the introduction of the
mandatory renewable fuel content by the Canadian government undoubtedly have had and will have an
impact on production patterns. At this time, there are no official statistics for the amount of corn and
wheat directed into bioethanol production.
i. Ethanol Produced from Corn
Corn remains the main feedstock for Canadian bioethanol production, and Ontario remains the largest
corn-producing province in Canada. In 2013 and 2014, corn is expected to account for about 78 percent
of bioethanol feedstock, respectively.
ii. Ethanol Produced from Wheat
Wheat is the feedstock for most of the balance of Canada’s bioethanol production. It is forecast to
account for about 22 percent of bioethanol feedstock for years 2013 and 2014. The newer wheat
bioethanol plants have more flexibility. Pipes are larger and allow the use of other feedstock, such as
corn, when wheat feedstock may be too expensive. For example, the Husky Energy wheat-based
bioethanol plant in Minnedosa, Manitoba uses corn when wheat feedstock is unavailable or too
expensive. However, Husky Energy has agreed that 80 percent of the feedstock used to produce
bioethanol will come from Manitoba producers. The agreement is with the Manitoba government and
expires in 2017.
As the bioethanol industry grows, demand for different wheat varieties is also expected to grow,
resulting in increased competition between wheat end-users, such as the Canadian bioethanol producers,
livestock producers and the milling industry. The need for high-yielding, low-protein wheat by the
livestock industry and the bioethanol plants are in direct conflict with the needs of the flour industry.
Increases in bioethanol efficient wheat is expected to affect production patterns and result in more
Canadian wheat farmers seeding area to lower protein/high starch wheat such as Winter Wheat and
Canadian Prairie Spring Wheat, rather than higher protein/lower starch wheat varieties used by the
milling industry. The livestock sector, especially the hog sector, competes for the same wheat varieties
as the bioethanol sector.
Additional layers of complication were removed with the December 15, 2011 decision by Canadian
legislators to pass into law the divisive Marketing Freedom for Grain Farmers Act. This Act has
transitioned the Canadian Wheat Board (CWB) from a state trading enterprise into a commercial
enterprise. Prior to the August 1, 2012 enactment date, the CWB had the exclusive right to purchase
Canada Biofuels Annual 2013
16
and sell western wheat (and barley) for domestic food use or export for the 70 years. However, since
the CWB was never very involved in bioethanol production, it is unlikely that this change will have an
effect on wheat-based bioethanol production.
C. Consumption
Based on the trend of net national sales of gasoline used for road motor vehicles between 2006 and
2011, and the projected trend for 2011-2014 (see Table 6, below), the federal mandate of 5 percent
renewable fuel content requires an estimated minimum of 2,269 million liters for 2013 and 2014 of
ethanol production — not just capacity. Production capacity of bioethanol is not expected to surpass
1,802 million liters in 2013 and 2014 (see Table 21, Appendix III).
Table 6
Canada: Sales of Gasoline Used for Road Motor Vehicles
in million liters
2006 2007 2008 2009 2010 2011 2012
2013
(e)
2014
(f)
Net sales
of
gasoline
38,65
4
39,63
5
39,14
9
39,70
8
40,10
1
40,21
7
42,79
9 45,380 45,380
Notes & Sources
(a) 2006-2011 consumption based on data available on Statistics Canada’s website and Natural Resources
Canada’s website
(b) 2012 data based on trend
(c) 2013-2014 gasoline consumption based on data from Hart Energy’s World Refining & Fuels Service
(WRFS)
(e) Estimated (f) Forecasted
D. Trade
While there are few reliable trade statistics for Canada’s fuel ethanol due to broad and changing HS
codes, Post forecasts that imports will rise to 1,144 and 1,216 million liters per year for 2013 and 2014,
respectively, up from an estimated 1,087 million liters in 2012. This increase is expected to be driven
by an increasing demand for ethanol because of mandates and industry’s inability to produce the
required amount of ethanol. Exports are expected to decrease between 2013 and 2014. This decrease
will most likely be due to the need for Canada to meet its own domestic mandates.
Due to the North American Free Trade Agreement (NAFTA), there is no tariff on renewable fuels
produced in the United States and imported into Canada. However, Canada does have a tariff on
bioethanol imported from other countries such as Brazil ($0.05 per liter).
Canada Biofuels Annual 2013
17
While the current differences in provincial tax exemptions for renewable fuels do not greatly affect
production decisions, the combination of lower oil prices (e.g. return to pre-2005 levels), and higher
grain prices could make certain provincial tax-exemption restrictions obstacles to expanding the
industry.
In recent years, nearly 100 percent bioethanol trade for Canada has been with the United States.
However, the possibility of significant increases in bioethanol trade, especially between the
northwestern United States and Western Canada (wheat-based bioethanol to the United States and corn-
based bioethanol to Canada), is unlikely to develop in the short to medium term. This is due mainly to
the fact that Canada does not have excess bioethanol production capacity, which would permit large
volumes of exports to the United States.
E. Ending Stocks
Due to a relative lack in data availability for stocks, stock data is mostly calculated based on estimated
trade balances. The high stocks listed for more recent years in Table 5 may, however, be put toward
consumption in order to meet mandated renewable content levels.
IV. Biodiesel
Canada Biofuels Annual 2013
18
Note: This section refers only to conventional/first generation biofuels.
Table 7
Biodiesel (Million Liters)
Calendar Year 2006 2007 2008 2009 2010 2011 2012
2013
(e)
2014
(f)
Beginning
Stocks (a)
400 452 550 521 516 528 185 49 93
Production (b) 48 95 95 148 170 185 210 471 646
Imports (c) 61 73 13 21 144 18 434 439 439
Exports (c) 0 11 69 60 71 108 102 153 250
Consumption
(d)
57 59 68 114 231 438 678 713 721
Ending Stocks
(g)
452 550 521 516 528 185 49 93 207
Production Capacity (h)
Number of
Biorefineries
3 3 4 5 9 10 9 12 12
Nameplate
Capacity
102 102 118 165 186 207 258 759 759
Capacity Use (%) 47.1% 93.1% 80.5% 89.7% 91.4% 89.4% 81.4% 62.1% 85.1%
Feedstock Use (1,000 MT)
Canola 1 1 1 20 25 25 31 151 232
Animal Fat 45 90 90 90 95 105 98 111 129
Recycled Oils 0 0 0 30 40 45 69 114 157
Soybean 0 0 0 0 0 0 0 57 75
Market Penetration (Liters - specify unit)
Biodiesel, on-
road use 32 32 37 65 127 248 379 400 406
Diesel, on-road
use (i)
16,61
2
17,13
3
16,55
5
16,18
8
16,77
9
17,79
7
17,29
4 17,422 17,551
Blend Rate (%) 0.2% 0.2% 0.2% 0.4% 0.8% 1.4% 2.2% 2.3% 2.3%
Biodiesel, total
use (j) 57 59 68 114 231 438 678 713 721
Diesel, total use
(i) (j) 26,78
2
28,00
8
27,58
7
25,17
8
27,58
7
28,54
9
28,15
8 28,386 28,613
Blend Rate (%)
(j) 0.2% 0.2% 0.2% 0.5% 0.8% 1.5% 2.4% 2.5% 2.5%
Diesel, total use
(i) (j)
30,04
0
31,58
0
30,78
8
28,33
0
30,51
9
31,45
0
30,95
2 31,073 31,193
Table 7 continued on next page…
(a) Stock data unavailable, included to ensure proper trade balances in following years (b) Production numbers based on industry discussion. (c) Trade data availability before 2012 is very limited. Trade numbers before 2012 compiled based on a
conglomeration of industry discussion, United States Department of Commerce data, and Natural Resources Canada data. Biodiesel trade for 2012 and 2013 is harmonized under HS Codes 3826.00 (assumed to be B100
Canada Biofuels Annual 2013
19
diesel fuel oil) and 2710.20 (assumed to be B5 diesel fuel oil). (d) Biodiesel consumption for each year based on provincial and federal renewable fuel mandates and data from
Statistics Canada. (e) Estimated (f) Forecasted (g) Data availability for diesel and biodiesel ending stocks is virtually nonexistent. Stock numbers estimated to ensure
correct trade balance for each year. (h) Production capacities and plant specifics based on industry discussion. (i) Diesel fuel comsuption data derived and projected from data from Statistics Canada. (j) Excluding consumption in heating sector. This is due to the recent development that heating oil will be exempted
from federal renewable content requirements.
A. Biodiesel Production
The federal biodiesel mandate of 2 percent in diesel fuel and distillate heating oil came into effect on
July 1, 2011. A permanent exemption has been provided for renewable content in diesel fuel and
heating distillate oil sold in Newfoundland and Labrador (to address the logistic challenges of blending
biodiesel in this region) as well as for renewable content in heating distillate oil. Temporary exemptions
for renewable content in diesel fuel and heating distillate oil sold in Quebec and all Atlantic provinces
have been extended, until June 30, 2013 to give Eastern Canada time to install biodiesel blending
infrastructure. This announcement, in combination with the extension of the ecoABC Initiative (a
program which assisted in the construction of biofuel facilities that have a minimum of five percent
producer investment) which was extended until September of 2012, is likely to help spur investment in
biodiesel production facilities. With the ecoABC Initiative and forecasted increased production, industry
is preparing to comply with the mandated requirements.
Biodiesel production is projected to more than double in 2013 to 471 million liters, up from an
estimated 210 million in 2012, due to new production capacity. In 2014, production is forecast to
increase even further to 646 million liters, partially due to the expected completion of a 265 million liter
plant. In the longer term, the European Union’s (EU) increased demands for renewable energy has
generated a potential and growing market for biodiesel exports from Canada, as has the RFS2 in the
United States. With the current plants and four plants under construction, including a 265 million liter
Archer Daniels Midland (ADM) plant, the federal biodiesel mandate is likely to be met with domestic
production by the end of 2014. ADM, a large American company involved in over 75 countries, is the
first instance of multi-national interest in the Canadian biodiesel industry. Despite the current growth,
future growth of the Canadian biodiesel industry may be limited due to the industry’s inability to secure
cheap feedstock. Most of the current and forecasted increase in biodiesel comes from canola and strong
world demand for vegetable oils may hinder Canada’s ability to take advantage of the growing biodiesel
market opportunities.
The federal government’s biofuel strategy program is geared more towards bioethanol and is therefore
limited in their ability to address the limiting factors for biodiesel market growth. This has implications
when trying to determine the profitability for a biodiesel venture. For example, crushing plants can be
used to produce oil for both biodiesel production and human consumption, but the federal government
does not want to inadvertently subsidize crushing capacity for oils destined for human consumption.
Canada Biofuels Annual 2013
20
B. Impacts of Biodiesel Production on Feedstock Markets
While biodiesel can be made from a variety of different feedstocks, prices and availability are the
determining factors likely to be considered. Canola, largely due to the abundance of the Canadian
production, has proven to be the natural feedstock choice. Projected canola-based biodiesel production
shows increases from 151 million liters (35 percent production share) in 2013 to 232 million liters (39
percent share) in 2014. Key competitors facing canola oil for use in biodiesel are rendered animal fats
(tallow), rendered oils (yellow grease), palm oil (which would be imported as Canada does not produce
palm oil), and soybean oil. Canola and soybeans are high-priced feedstock for biodiesel since they are
priced as food oils in international markets. Palm oil and rendered fats are priced at feed and industrial
use levels.
In fall of 2011, the United States Environmental Protection Agency (EPA) signed the Canadian
Aggregate Approach Petition to approve Canadian feedstocks, including canola, for biodiesel
production in the United States. This decision provides secure access for Canadian canola as a
sustainable feedstock for U.S. biodiesel markets. As a result, it is likely that there will be more Canadian
exports of canola to the United States to meet RFS2, with some canola derived biodiesel returning to
Canada.
Most of the growth in biodiesel production capacity has occurred in Western Canada, where the
majority of the canola is grown, spurred on by provincial mandates in addition to the federal mandate.
Canola production has reached record high levels in recent years. Increased demand for canola oil from
the food retail industry has resulted in higher prices. In 2012, canola producers responded by planting
record acreage, up 13 percent from an already record 2011 year. In 2013, area seeded to canola is
estimated to have fallen 8 percent from the previous year, but remains at a historically high level.
Despite the supply response of recent years, some industry observers suggest that canola could remain
too expensive, and that a 2 percent biodiesel blend must be met with cheaper feedstock. As demand for
the feedstock increases, it is likely that canola prices will also increase.
While canola use for biodiesel by-itself may be expensive, the co-products from biodiesel production
may make economic sense. Co-products include meal to be used in animal feed. There are limits on the
profitability of using canola as a feedstock if by-products are part of the everyday production process.
For example, off-seed canola may not be a suitable feedstock since this meal may not meet quality
standards. Despite these limitations, co-products and the production capacity of the plants (these plants
could potentially supply the vast majority of the federal 2 percent biodiesel mandate), combined with
provincial biodiesel mandates may make the industry profitable, despite higher commodity prices.
In 2014, while the amount of tallow used for biodiesel is forecast to increase by 16 percent, the share of
biodiesel production from tallow (animal fats) is expected to decrease from estimated 2013 levels of 26
percent to 22 percent due to completion of new biodiesel plants using other feedstocks. The share of
biodiesel produced from yellow grease is forecast to fall to remain relatively steady at 26 percent of
production.
C. Consumption
Canada Biofuels Annual 2013
21
Based on the trend of net national sales of diesel used for road motor vehicles between 2006 and 2011
(see Table 1, above), and the federal mandate which includes renewable fuel content in both the diesel
oil sales for transportation as well other sectors, Post estimates that Canada will consume 713 million
liters of biodiesel in 2013 and forecasts consumption at 721 million liters of biodiesel production in
2014 (see Table 7, above). By the end of 2014, the temporary exemptions for eastern Canada and
Quebec will have been lifted, the compliance period will have ended, and the full federal mandate
should be in force.
D. Biodiesel Trade
Trade data for biodiesel is problematic since Canada did not have an established HS code for biodiesel
until 2012. Adding to the complication, a European Union anti-dumping trade investigation which
concluded in 2010, revealed inconsistencies between the European Union biodiesel import trade data
and the Canadian biodiesel production capacity, which is still in its infancy. The trade data from before
2012 used in this report is therefore based on a conglomeration of industry discussion, United States
Department of Commerce data, Natural Resources Canada data, and Global Trade Atlas data. Lack of
biodiesel production capacity in some provinces has meant that some provincial mandates have
necessitated the importation of biodiesel to ensure compliance, such as BC in 2010. Imports are
expected to become less necessary over the next few years as production capacity grows and fulfills
more of the federal and provincial mandates. Thus, import amounts are expected to level out in 2013 to
2014. However, this is subject to considerable variation depending on the amount of actual production,
which fluctuates due to changing capacity use. Exports are expected to increase in 2013-2014 as U.S.
demand for biodiesel increases.
Of note, the two Canadian companies that participated in the EU anti-dumping investigation have been
exempt from the anti-dumping duties placed on the Canadian biodiesel industry following the
investigation. Future Canadian biodiesel companies who wish to export biodiesel to the European
Union will be provided the opportunity to apply for exemptions as well.
More information on the EU investigation is available at:
Council implementing regulation no 443/2011 (anti-subsidy)
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:122:0001:0011:EN:PDF
Council implementing regulation no 444/2011 (anti-dumping)
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2011:122:0012:0021:EN:PDF
Canada Biofuels Annual 2013
22
E. Ending Stocks
There are no official statistics kept on biodiesel stocks, so Post has estimated stocks based on trade
balance calculations. However the biodiesel forecast to be put toward stocks could instead be exported
or put toward domestic consumption, depending on Canadian need to meet the mandated renewable
content levels.
V. Advanced Biofuels
While Canada is still not a significant producer of advanced biofuels, over the past few years it has been
making progress toward beginning full-scale operation plants. In 2009, Enerkem opened a
demonstration biofuels and biochemicals facility; in spring of 2012, this plant began production of
cellulosic ethanol via treated wood as feedstock at a 5 million liter capacity. Although this may be the
only advanced biofuels plant in Canada at the current moment, Enerkem is undergoing construction of a
38 million liter, cellulosic ethanol plant in Edmonton, Alberta. Edmonton will provide 100,000 dry
metric tons of municipal solid waste to the plant as feedstock. The plant is expected to be operational in
early 2014. Further into the future, Varennes Cellulosic Ethanol L.P., a joint venture of Enerkem and
Greenfield Ethanol Inc., is also planning a full-scale, cellulosic ethanol plant in Varennes, Quebec. The
plant will use Enerkem’s proprietary thermochemical technology to convert non-recyclable waste into
38 million liters of cellulosic ethanol per year.
There is also Atlantic Canadian interest in producing cellulosic from wood waste or other advanced
feedstock. For more information, please see the below section regarding biofuels in Atlantic Canada.
According to the Canada Gazette, as of February 26, 2011, some biodiesel producers may be
considering the possibility of renovating existing refineries in order to produce hydrotreated vegetable
oil (HVO). These considerations are attributable to some substantial advantages that HVO has over
biodiesel, including higher energy content, no need for temperature regulation during transportation, and
significant convenience for blenders due to the chemical equivalence to diesel. However, HVO is
currently less economic than biodiesel, resulting in less Canadian demand. There are currently no
domestic HVO production facilities, and any intentions to start-up such facilities are not expected to be
fulfilled in the near future.
Although recent data from F.O.Licht has shown relatively little domestic consumption of HVO, there
has been some demand which has, in recent years, pushed imports of HVO to levels comparable to
imports of biodiesel.
VI. Biomass for Heat and Power
Canada Biofuels Annual 2013
23
A. Wood Pellets
There is current interest in exporting wood pellets from Canada to Europe to meet the increased demand
for biofuels in European countries. The EU has been increasing funding for renewable energy
production, including doubling the financial allotment of funds to renewable energy in 2007. In 2004,
the EU announced that by 2020, 20 percent of its total energy consumption requirements will be
renewable energy sources, greatly higher than the 12.4 percent in 2010. The pellet industry in Canada,
especially in the west, has grown rapidly. According to the Canadian Wood Pellet Association (WPAC),
in 2012, Canada had 42 pellet plants with 3 million tons annual production capacity, compared to 2010’s
33 plants and 2 million tons capacity.
The province of British Columbia accounts for about 65 percent of Canadian production capacity.
Collectively, the provinces of Alberta, Quebec, New Brunswick, Nova Scotia, and New Brunswick account
for 35 percent. According to Executive Director Gordon Murray of the Canadian Wood Pellet Association, it
is estimated that 90 percent of Canadian pellets were exported to Europe during 2010.
Canadian pellet consumption has remained relatively steady throughout the past several years, and there are
no official statistics reflecting possible increases. However, a report released by the WPAC notes that
demand for wood pellets may increase in the coming years due to Canadian desire to reduce carbon
emissions in the coming years. The targeted reductions would require about 14 million tones of wood pellets
to replace coal by 2020. While this desire remains somewhat impractical, Post estimates that 2013 and 2014
will show consumption increases, while not as large as mentioned above, that will reflect rising demand.
Table 8
Wood Pellets (1,000 MT)
Calendar Year 2006 2007 2008 2009 2010 2011 2012
2013
(e)
2014
(f)
Beginning
Stocks
0 0 0 0 1 1 0 443 1,512
Production
1,14
5
1,48
5
1,335 1,300 1,320 1,934 2,000 2,540 3,226
Imports 0 0 0 40 0 0 45 29 12
Exports
1,05
5
1,39
0
1,240 1,244 1,225 1,870 1,369 1,739 2,209
Consumption 90 95 95 95 95 65 233 400 690
Ending Stocks
(a)
0 0 0 1 1 0 443 873 1,851
Production Capacity
Number of Plants
(b)
25 29 33 37 42 46 46
Canada Biofuels Annual 2013
24
Nameplate
Capacity
1,400 1,700 2,000 2,931 3,000 3,707 3,707
Capacity Use (%)
95.4
%
76.5
%
66.0
%
66.0
%
66.7
%
68.5
%
87.0
%
Data based on available information from the Canadian Wood Pellet Association and Statistics Canada. All other
data estimated based on trend.
(a) No official stock data available. Stocks assumed to reflect trade balance. Wood pellet stock in 2013 and 2014
may be put toward consumption or export depending on Canadian and European future demand.
(b)Plant information regarding number of plants and capacity unavailable before 2008.
B. Fuels Produced from Other Biomass
There has been growing interest and investment in producing bioenergy from sources other than corn
and wheat. Recently, there have been announcements of joint ventures to make cellulosic bioethanol
and biogas, including a joint cellulosic bioethanol venture announced by GreenField Bioethanol and
Enerkem. Enerkem, a Quebec-based gasification and catalysis technology company, has developed
technology to convert biomass such as municipal solid waste and wood residue into cellulosic
bioethanol. Its commercial-scale demonstration facility in Westbury, Quebec, which was completed in
2009, reached 1,000 hours of operation in 2010 and agreed to sell all ethanol produced to GreenField
Ethanol. Enerkem continues to grow, and is in the construction phase of its second plant, in partnership
with the City of Edmonton and Alberta Innovates. The commercial waste-to-biofuels production
facility is scheduled to begin ethanol production in the beginning of 2014. It is expected to have a
production capacity of 38 million liters of ethanol per year.
Biogas is also of increasing interest and investment. Two of the three bio-energy projects that received
funding under Alberta’s Biorefining Commercialization and Market Development Program and the Bio-
energy Infrastructure Development Program are for the development of biogas as an alternative source
of energy. Kingdom Farm Inc. received a significant grant to review the potential for bio-gas from large
scale Alberta hog operations. Highmark Renewables Research also received a significant grant from
AVAC Ltd. for a bio-gas feasibility study at a large scale dairy facility.
Most fuels derived from non-grain biomass remain at the research level. One company moving to
commercialize this technology is Lignol Energy Corporation, which specializes in cellulosic bioethanol
and biorefining. Lignol announced the completion of a fully integrated industrial-scale biorefinery pilot
plant in Burnaby, British Columbia in 2009. This plant is an end-to-end producer of cellulosic
bioethanol. On June 15, 2010, Lignol signed a research and development agreement with Novozymes,
the world’s leading producer of industrial enzymes, to make biofuel from wood chips and other forestry
residues. The partners aim to develop a process for making biofuel from forestry waste at a cost as low
as $2 per gallon, a price competitive with gasoline and corn bioethanol at the current United States’
market prices. On February 7, 2012, it was announced that Sustainable Development Technology
Canada (SDTC) awarded $2.06 million to Lignol, in addition to $4.2 million already contributed.
Ontario Power Generation (OPG) is looking to buy two to three million tons of biomass annually by
2015 – the date at which the Ontario government has mandated an end to burning coal for electricity
generation. Biomass is targeted to replace coal as soon as technical obstacles are overcome. OPG will
Canada Biofuels Annual 2013
25
phase out the use of coal at its thermal electricity stations by the end of 2014. However, for biomass to
completely replace coal, it must find a more efficient and condensed solution for transport and handling.
Canada Biofuels Annual 2013
26
Appendix I
Transport Fuel and Energy Consumption
Table 9
Domestic Energy Consumption
in petajoules
2006 2007 2008 2009 2010 2011 10/11 Change
Residential 1,280 1,399 1,400 1,321 1,265 1,352 6.88%
Commercial 1,047 1,097 1,110 1,049 1,027 1,088 5.94%
Industrial 2,302 2,433 2,392 2,231 2,351 2,440 3.79%
Transportation 2,494 2,594 2,585 2,531 2,619 2,634 0.05%
Agriculture 229 238 243 211 245 272 11.02%
Public Administration 131 126 127 123 119 123 3.36%
Total 7,513 7,915 7,886 7,490 7,654 7,945 3.80%
Source: Statistics Canada
Table 10
Transportation Sector Energy Use by Source
in petajoules
2006 2007 2008 2009 2010*
Total Energy Use 2,457 2,555 2,542 2,507 2,595
Electricity 4 3 2 2 3
Natural Gas 2 2 2 2 2
Motor Gasoline 1,370 1,393 1,375 1,395 1,407
Diesel Fuel Oil 740 772 789 751 812
Light Fuel Oil and Kerosene 0 0 0 0 0
Heavy Fuel Oil 69 84 85 86 84
Aviation Gasoline 3 3 3 3 3
Aviation Turbo Fuel 252 254 240 219 228
Propane 11 12 13 11 11
Shares (%) 2006 2007 2008 2009 2010
Electricity 0.1% 0.1% 0.1% 0.1% 0.1%
Natural Gas 0.1% 0.1% 0.1% 0.1% 0.1%
Table 10 continues on next page…
Motor Gasoline 55.8% 54.5% 54.1% 55.6% 54.2%
Canada Biofuels Annual 2013
27
Diesel Fuel Oil 30.1% 30.2% 31.1% 30.0% 31.3%
Light Fuel Oil and Kerosene 0.0% 0.0% 0.0% 0.0% 0.0%
Heavy Fuel Oil 2.8% 3.3% 3.3% 3.4% 3.2%
Aviation Gasoline 0.1% 0.1% 0.1% 0.1% 0.1%
Aviation Turbo Fuel 10.2% 10.0% 9.4% 8.7% 8.8%
Propane 0.5% 0.5% 0.5% 0.4% 0.4%
* year 2010 is the latest year for which data was available
Source: Office of Energy, Natural Resources Canada
Table 11
Energy Use by Transportation Sector
in petajoules
2006 2007 2008 2009 2010
Total Energy Use 2,457 2,555 2,542 2,507 2,595
Freight 1,005 1,053 1,064 1,038 1,101
Passenger 1,352 1,400 1,376 1,377 1,390
Off road 100 102 102 92 104
Shares (%) 2006 2007 2008 2009 2010
Freight 41% 41% 42% 41% 42%
Passenger 55% 55% 54% 55% 54%
Off road 4% 4% 4% 4% 4%
* year 2010 is the year for which the most recent data is available
Source: Office of Energy , Natural Resources Canada
Canada Biofuels Annual 2013
28
Appendix II
Provincial Mandates, Policies, Tax Exemptions, Incentives and Conditions
A. Alberta Biofuel Policies
Biofuels Strategy/Policy Documents:
The buildup of biofuels production capacity in Alberta has largely been the result of its nine-point
bioenergy plan, first announced in October 2006. In December 2008, the government built on this plan
and announced its Provincial Energy Strategy.
Renewable Fuel Standard:
As part of the strategy, the government of Alberta announced its intention to implement a renewable
fuel standard of 5 percent bioethanol content in gasoline and 2 percent renewable content in diesel by
2010. The implementation was later pushed back to April 1, 2011. In addition, the production and
manufacturing life cycle of the renewable fuel must be at least 25 percent lower than emissions from
producing and manufacturing the same quantity of traditional fossil fuels.
Production Incentives:
As mentioned in Table 13, the province of Alberta offered a Bioenergy producer credit program (PCP).
It was, however, announced in Alberta’s Budget 2013 that future rounds of the PCP have been
discontinued.
Context:
According to the most recent data, Alberta boasts approximately 11 percent of Canada’s total
population, 14 percent of net gasoline sales and 6.5 percent of bioethanol production capacity.
Table 12
Alberta: Provincial Programs to Encourage the Development of a Biofuels Industry
Program name: Bioenergy Infrastructure
Development Grant Program
Commercialization/Market Development
Program
Budget
Allocation:
Alberta’s Biorefining Commercialization and Market Development Program and
Bioenergy Infrastructure Development Program have both been fully allocated and
expired on March 31, 2011. Together, the programs supported more than 70
bioenergy projects with grants totalling approximately $150 million.
These two programs are no longer accepting applications.
Administering
Ministry
Alberta Energy
Table 12 continued on following page…
Canada Biofuels Annual 2013
29
Alberta: Provincial Programs to Encourage the Development of a Biofuels Industry
Program
name:
Bioenergy Infrastructure
Development Grant Program
Commercialization/Market Development
Program
Type of
Program:
Financing grant Financing grant
Program
Design or
Purpose:
To assist municipalities with the
development and distribution
infrastructure of biofuels and
energy.
Designed to increase production capacity
through the market development and
commercialization of biofuels.
Duration Began April 1, 2008 and
originally was to end March 31,
2009 but extended to March 31,
2011.
Began April 1, 2008 and originally was to
end March 31, 2009 but extended to March
31, 2011.
Additional
notes:
Some program modifications due to
its extension. For more on how this
affects the programs see FAQs.
Some program modifications due to its
extension.
Table 13
Alberta: Provincial Mandates, Tax Exemptions, Incentives, and Conditions
Mandate Incentives Conditions/Duration
Alberta has enacted a
Renewable Fuels
Standard that will be
implemented April 1
2011. It will require an
average of 2 percent
renewable diesel and 5
percent bioethanol.
Bioenergy producer credit
program (PCP): For the first
150 million liters of second-
generation bioethanol
capacity a plant has, the
maximum producer credit
amount is $0.14/L; beyond
150 million liters, it is
$0.09/L.
The cap is $25.5 million per
year. For electricity from
biomass (e.g. biogas,
syngas), the rate is $0.06
per kilowatt hour (kWh) for
the first 26,280 megawatt
hours (MWh) of production
capacity; beyond 26,280
MWh, the rate $0.017 per
kWh.
Duration: The current credit program runs
from April 1, 2007 – March 31, 2011. The
PCP was discontinued in 2013, but existing
BPCP commitments are still being honored.
Alberta’s current bioenergy program treats
all bioethanol equally. The extended
program focuses on the great potential for
second generation bioethanol, which uses
feedstocks like forestry, agricultural and
municipal waste. Specifically, the program
will encourage development of new
technologies and facilities that use non-food
crops, waste biomass or wood.
Canada Biofuels Annual 2013
30
B. British Columbia Biofuel Policies
Biofuels Strategy/Policy Documents:
In 2008, the province of British Columbia (BC) committed to bioenergy and renewables and set an
objective to lower greenhouse gases emissions 33 percent by 2020. The province, under its Ministry of
Energy, Mines and Petroleum Resources, unveiled two strategy documents/plans related to using
bioenergy resources to reduce greenhouse gases. The first is the BC Energy Plan, unveiled late
February 2007. This document sets out the necessary steps for reducing BC’s greenhouse gas emissions
and commits to investments in alternative technologies, including biofuels for transportation. The
second is the BC Bioenergy Strategy, which aims for BC biofuel production to meet 50 percent of the
province’s renewable fuel requirements by 2020. The BC Bioenergy Strategy was made public at the
end of January 2008.
Renewable Fuel Standard:
Since January 1, 2010, but amended in June 2011, British Columbia’s Renewable and Low Carbon Fuel
Requirements Regulation has required:
A provincial annual average of five percent renewable content in gasoline sold in British
Columbia.
A provincial annual average of three percent renewable content in diesel sold in British
Columbia in 2010 and four percent in 2011 onward.
A 10 percent reduction in the carbon intensity of transportation fuels by 2020.
Consumption Incentives:
Motor Fuel Tax Act and Carbon Tax Incentive
The incentives for bioethanol and biodiesel when blended with gasoline or diesel were discontinued,
effective January 1, 2010. Fuel with at least 85 percent bioethanol, natural gas and propane (effective
July 1, 2010) when used in a motor vehicle are exempt of the Motor Fuel Tax Act. Under specific
conditions hydrogen is also exempt from the Motor Fuel Tax Act.
Canada Biofuels Annual 2013
31
Table 14
British Columbia: Programs to Promote a Provincial Renewable Fuels Industry
Program
Name
Budget Allocated /
Administering
Ministry or Agency
Type of Program/ Program Design / Duration
BC
Bioenergy
Network
C$25 million
Grant; funding assistance
Capacity building; maximize biomass value; to encourage
the development and marketing of wood-to-bioenergy and
other bioenergy technologies.
Ministry of Energy,
Mines and Petroleum
Resources; BC
Bioenergy Network
Began April 1, 2008 and has no specific end date
Additional note: The projects funded so far include C$3
million in funding assistance to Lignol Energy Corporation,
C$3 million to Nexterra, C$400,000 to Cedar Road,
C$100,000 investment in University of British Columbia’s
Clean Energy Research Centre (CERC), and a C$135,000
investment in a Wood Pellet Association of Canada
Torrefaction Technology Study.
Liquid
Biofuels
Program
C$ 10 million Grants, funding assistance;
To help build up liquid biofuels production capacity.
Ministry of Small
Business, Technology
and Economic
Development
Call for applications went out late November, 2008, and
application date closed January 2009.
Additional note: Projects that were awarded funding were
announced in April 2009. Two of the eight projects are
projects which use woody biomass to produce cellulosic
bioethanol. The remaining six projects are for biodiesel
production.
Innovative
Clean
Energy Fund
C$ 25 million per year
Grants, funding assistance;
To address specific energy and environmental problems that
have been identified by the province by supporting the pre-
commercial energy technology that is new or commercial
technologies not currently used in the province (note: the
funding is not specific to biofuels, but alternative fuel
technologies are eligible);
Ministry of Small
Business, Technology
and Economic
Development
Established in December 2007.
Additional note: The First Call was announced in July
2008, the Second Call was announced in April 2009, and
the Third Call, First Intake was announce in March 2010.
Context:
Canada Biofuels Annual 2013
32
According to the most recent data, British Columbia boasts approximately 13.1 percent of Canada’s
total population, 11 percent of net gasoline sales and virtually no commercial bioethanol production
capacity.
Table 15
British Columbia: Provincial Mandates, Tax Exemptions, Incentives, and Conditions
Mandate Incentives Conditions/Duration
5 percent for gasoline
4 percent for diesel-
phased in over a two-
year period:
3 percent average
starting
January 1, 2010;
4 percent (2011)
Fuel with at least 85 percent
bioethanol, natural gas and propane
(effective July 1, 2010) when used
in a motor vehicle are exempt of the
Motor Fuel Tax Act.
Under specific conditions hydrogen is
also exempt from the Motor Fuel Tax
Act.
The incentives for bioethanol and
biodiesel when blended with gasoline
or diesel were discontinued, effective
January 1, 2010.
Carbon Tax Exemption
The exemptions for bioethanol and
biodiesel under the Carbon Tax Act,
were discontinued, effective January
1, 2010.
Duration: No duration specified
C. Manitoba Biofuel Policies
Biofuels Strategy/Policy Documents:
Manitoba is developing its bioethanol and biodiesel industries under the Energy Development Initiative
section of the Ministry of Innovation, Energy and Mines. Information on Manitoba’s biofuels initiatives
is available on the province’s Energy Development Initiative website.
Renewable Fuels Mandate:
The implementation of The Bio-fuels and Gasoline Tax Amendment Act was enacted in the fall of
2007. The mandate requiring that 8.5 percent of the gasoline sold in the province must be bioethanol
came into effect on January 1, 2008, beginning with a 5 percent bioethanol requirement for the first
quarter of the year and moving to 8.5 percent for the remainder of 2008 and subsequent years. In
December, 2007 the Province of Manitoba passed the Biofuels Act which includes strict licensing and
fuel quality requirements and the option for a future biodiesel mandate.
Production Incentives:
The gasoline tax exemptions for bioethanol have been replaced by a direct producer grant that decreases
over a period of eight years. The staggered, decreasing production incentives are as follows: 20
Canada Biofuels Annual 2013
33
cents/liter producer incentive beginning January 1, 2008 until December 31, 2009; 15 cents/liter
production incentive beginning January 1, 2010 until December 31, 2012; 10 cents/liter producer
incentive beginning January 1, 2013 until December 31, 2015. To be eligible for the incentive,
bioethanol must be produced in Manitoba and sold in Manitoba to fuel suppliers. More information on
the program is available at: Bioethanol Fund Grant Regulation.
Context:
According to the most recent data, Manitoba boasts approximately 4 percent of Canada’s total
population, 4 percent of net gasoline sales and 7 percent of bioethanol production capacity.
Table 16
Manitoba: Provincial Mandates, Tax Exemptions, Incentives, and Conditions
Mandate Incentives Conditions/Duration
8.5 percent pool average
bioethanol content in
gasoline beginning April 1;
2008
2 percent biodiesel pool
average in diesel beginning
Nov. 1, 2009.
Direct Payment Bioethanol
Production Incentive
15 cents/liter producer
credit from January 1,
2010 December 31, 2012.
10 cents/liter from January
1, 2013 - December 31,
2015.
Condition: To be eligible for the credit,
the bioethanol has to be produced and
sold in Manitoba.
The incentive is capped on an annual
basis by the amount of bioethanol
required for the mandate.
Duration: January 1, 2008 – December
31, 2015.
D. Ontario Biofuel Policies
Biofuels Strategy/Policy Documents:
Ontario is the largest bioethanol-producing province in Canada and has been a leader in building
bioethanol production capacity in Canada. Ontario’s bioethanol strategy has two components; (1) a
renewable fuel standard mandate, and (2) the Ontario Bioethanol Growth Fund (OEGF) that was created
in 2005.
Renewable Fuels Standard:
As of January 1, 2007, the gasoline tax exemption of 14.7¢ a liter on the bioethanol portion of the
bioethanol-blended gasoline is no longer in effect. At the same time, a mandate that requires on
average, no less than 5 percent bioethanol be blended in the gasoline sold in Ontario came into effect.
Canada Biofuels Annual 2013
34
While Ontario currently has no regulations for a provincial renewable diesel requirement, it was
announced on May 2, 2013, that the government will undertake a formal consultation on the creation of
a renewable diesel mandate. The CRFA recommended a 2 percent biodiesel mandate for Ontario, but
upcoming consultations will determine the details of the potential mandate. For updates on the
regulations, visit http://www.greenfuels.org/en.aspx.
Provincial Programs to Support the Development of a Regional Biofuels Industry:
The Ontario Bioethanol Growth Fund (OEGF) provides:
C$32.5 million for capital assistance to help meet financial challenges; cannot exceed 10¢ per
liter;
C$60.5 million per year from 2007-2017 for operating assistance to address changing market
prices; no operating grant will exceed 11¢ per liter of bioethanol;
C$16 million in support of independent retailers selling bioethanol blends Independent Gasoline
Blender’s Transition Fund;
C$7.5 million in private and public funds for research and development opportunities.
The OEGF is fully subscribed and is no longer taking applications.
Context:
According to the most recent data, Ontario boasts approximately 38 percent of Canada’s total
population, 39 percent of net gasoline sales and 58 percent of bioethanol production capacity.
Table 17
Ontario: Provincial Mandates, Tax Exemptions, Incentives and Conditions
Mandate Incentives Conditions
Effective January 1, 2007, all gas sold
must contain no less than 5 percent
bioethanol.
Bioethanol
$32.5 million for capital assistance to help
meet financial challenges;
$60.5 million per year from 2007-2017 for
operating assistance to address changing
None
Canada Biofuels Annual 2013
35
market prices;
$16 million in support of independent
retailers selling bioethanol blends;
$7.5 million in private and public funds for
research and development opportunities.
Biodiesel
Biodiesel used in a licensed motor vehicle is
exempt from Ontario fuel tax (14.3 cents per
liter).
E. Quebec Biofuel Policies
Biofuels Strategy/Policy Documents:
Quebec currently has no mandate in place for renewable fuel content in gasoline. However, it
contributes to national compliance with the federal Renwable Fuels Regulations.
Production Incentives:
Quebec currently has in place a temporary refundable tax credit (maximum C$0.185 per liter), granted
for a maximum of 10 years to corporations that produce bioethanol from renewable material and sell the
bioethanol for use in Québec. It began April, 2006 and expires in 2018. An eligible corporation’s
bioethanol production must be sold in Quebec to a person holding a collection officer’s permit issued
under the Fuel Tax Act. Additional conditions for the credit limit a maximum bioethanol production
credit of 126 million liters and no tax credit for the month in which the average monthly price of crude
oil is equal to or greater than USD$65, or the total cumulative production of bioethanol exceeds 1.2
billion liters. The reasoning for this limitation is that it was assumed that bioethanol would be
competitive with gasoline if the price of crude oil exceeded USD$65 a barrel. More information is
available on the web site of Revenue Quebec.
Green Technologies Demonstration Program
The purpose of the program is to finance demonstration projects of innovative technologies and
procedures that have strong potential for reducing greenhouse gas emissions in Québec. It pursues the
objectives of two different green development strategies, the Development Strategy of the Quebec
environment industry and green technologies and the Québec Energy Strategy 2006-2015. The program
focuses on reducing greenhouse gas emissions by supporting the development of technologies that limit
or reduce greenhouse gas emissions; improving energy efficiency so as to reduce consumption of fossil
fuels; replacing fuels and fossil fuels with renewable energy; contributing to the development of Québec
industry and job creation in the green technology sector.
Enerkem
Canada Biofuels Annual 2013
36
While some corn production takes place in Quebec, Quebec’s focus is on the development of cellulosic
bioethanol. It is Quebec’s intention to use wood from its forestry industry to grow its bioethanol
market. This technology seems to be moving closer to commercialization given the joint venture
announcement between Enerkem, a Quebec-based gasification and catalysis technology company, and
GreenField Bioethanol, Canada’s leading bioethanol producer. Enerkem was founded in 2000 and
currently operates two plants in Canada: a pilot facility in Sherbrooke, QC and a commercial-scale plant
in Westbury, QC. It has currently constructing its waste-to-biofuels plant in Edmonton, AB, Canada,
which has received over C$23 million from the government of Alberta and the City of Edmonton.
Additionally, Enerkem, in joint with GreenField Ethanol Inc., has proposed a plant in Varennes Quebec,
Varennes Cellulosic Ethanol L.P. The Quebec government announced that it will be injecting $27
million into the plant. Varennes Cellulosic Ethanol L.P. will use Enerkem’s proprietary thermochemical
technology to convert non-recyclable waste into 38 million liters of cellulosic ethanol per year.
Context:
According to the most recent data, Quebec boasts approximately 24 percent of Canada’s total
population, 21 percent of net gasoline sales and 10 percent of bioethanol production capacity.
Table 18
Quebec: Provincial Mandates, Tax Exemptions, Incentives, and Conditions
Mandate Incentives Conditions/Duration
None Tax Credit Refund
On April 21, 2005, the government
announced a refundable tax credit,
to be granted for a maximum of 10
years, to corporations that produce
bioethanol from renewable material
and sell the bioethanol for use in
Québec.
Tax credit is limited to a maximum bioethanol
production credit of 126 million liters and no tax
credit is given for the month in which the average
monthly price of crude oil is equal to or greater than
USD$65 a barrel or the total cumulative production
of bioethanol exceeds 1.2 billion liters.
Duration:
April 1, 2006 - March 18, 2018
F. Saskatchewan Biofuel Policies
Canada Biofuels Annual 2013
37
Biofuels Strategy/Policy Documents:
Saskatchewan’s “Go Green” strategy promotes environmentally friendly transportation. Initiatives
include working with industry to develop E85 (fuel blends with 85 percent bioethanol and 15 percent
gasoline) corridors in the province, developing a 1.4 billion liter biofuels industry in Saskatchewan, and
implementing a Government and Crown vehicle purchase policy that requires all vehicles to be hybrid
electric, alternative or flex-fuel, or within the top 20 percent efficiency in their class.
Renewable Fuels Mandate:
Saskatchewan currently has a 7.5 percent bioethanol content requirement in its gasoline.
Production Incentives:
Saskatchewan does not provide fuel tax exemptions for alternative fuels but does provide grants to fuel
distributors through the Bioethanol Fuel Grants Program. To be eligible for the grants, the bioethanol
used by the distributor has to have been produced at a facility located in Saskatchewan from biomass
grown in Saskatchewan. The program provided a 15 cent per liter grant to eligible distributors who
blend Saskatchewan produced ethanol for domestic consumption. A program review indicated that the
objectives of the program have been largely met, and a phase out program started April 1, 2013. This
reduced the grant from 15 cents per liter to 10 cents per liter with an annual cost of $16 million (down
from $24 million).
Enterprise Saskatchewan administers the Saskatchewan Bioethanol Program.
Table 19
Saskatchewan: Programs to Promote a Provincial Renewable Fuels Industry
Program
Name
Budget Allocated /
Administering Ministry
or Agency
Type of Program/ Program Design / Duration
SaskBio
C$80 million
Loans, repayable contributions of up to C$10 million
dollars;
Created to provide an opportunity for Saskatchewan
residents to participate in value-added biofuel production in
Saskatchewan through investment ownership in biofuels
facilities.
Ministry of Agriculture
Began December 2008, ended December 2012
Additional note: Program conditions includes 5 percent
Saskatchewan ownership and annual production capacity of
a new facility of 2 million liters per year.
Context:
According to the most recent data, Saskatchewan boasts approximately 3 percent of Canada’s total
population, 3 percent of net gasoline sales and 19 percent of bioethanol production capacity.
Canada Biofuels Annual 2013
38
Table 20
Saskatchewan: Provincial Mandates, Tax Exemptions, Incentives and Conditions
Mandate Incentives Conditions/Duration
All gas sold must contain 7.5 percent
bioethanol, began mid-2006.
Bioethanol Fuel Grants Program
Grants for eligible fuel distributors.
Duration:
No duration
specified.
G. Biofuel Policies in Atlantic Canada
Biofuels Strategy/Policy Documents:
Biomass developments are increasing in Atlantic Canada. The Atlantic Council for Bioenergy Co-
operative (ACBC) was founded in 2010 with the vision of bringing a vibrant, sustainable bioenergy
industry to Atlantic Canada. While Atlantic Canada may lack the arable area for traditional biofuels
feedstock, options are being explored in the realm of cellulosic ethanol and renewable diesel via wood
waste and other advanced feedstock. Although, little information is available currently, an ACBC
media conference will be held in early July, 2013 to discuss and announce plans to develop a thriving
renewable energy supply in Atlantic Canada. This information will be posted on ACBC’s website
shortly thereafter.
Currently, however, Nova Scotia is the only province to include a tax credit on biodiesel. The
remaining Atlantic provinces have no incentives, mandates or tax credits regarding biofuels and are the
only governments in Canada that do not have a biofuels or bioenergy policy in place. The New
Brunswick Department of Environment has indicated that it will consider implementing the federal
national standard in New Brunswick, but has not committed to an official provincial mandate.
Canada Biofuels Annual 2013
39
Appendix III
Biofuel Plants: Existing, Expanding, Under Construction
Table 21
Ethanol Production Plants: Existing, Expanding, Under Construction
Status Location Company Name
Primary
Feedstock
Nameplate
Capacity (million
liters)
Existing Westbury, Quebec Enerkem Wood waste 5
Existing Lanigan,
Saskatchewan
Pound-Maker Wheat 15
Existing Weyburn,
Saskatchewan
NorAmera
Bioenergy
Wheat, corn 25
Existing Unity,
Saskatchewan
North West
Terminal Ltd.
Wheat 25
Existing Tiverton, Ontario GreenField
Ethanol
Corn 27
Under
construction
Edmonton, Alberta
Enerkem Municipal
landfill waste
38
Existing Hairy Hill, Alberta Growing Power
Hairy Hill
Wheat 40
Existing Red Deer, Alberta Permolex Wheat 42
Existing Havelock, Ontario Kawartha
Ethanol
corn 80
Existing Minnedosa,
Manitoba
Husky Energy Corn, wheat 130
Existing Lloydminster,
Saskatchewan
Husky Energy Wheat 130
Existing Aylmer, Ontario IGPC Corn 172
Existing Belle Plaine,
Saskatchewan
Terra Grain
Fuels
Wheat, corn 150
Existing Varennes, Quebec GreenField
Ethanol
Corn 175
Existing Chatham, Ontario GreenField
Ethanol
Corn 195
Existing Johnstown, Ontario GreenField
Ethanol
Corn 200
Existing Sarnia, Ontario Suncor Energy Corn 396
TOTAL: 1,845
Source: Attempted to contact each respective company. Cross-checked data with Canadian Renewable
Canada Biofuels Annual 2013
40
Fuels Association and the Global Biofuels Center; forecasted production capacity for 2014.
Table 22
Biodiesel Production Plants: Existing, Expanding, Under Construction
Status Location Company Name Feedstock
Nameplate
Capacity (million
liters)
Existing Mississauga,
Ontario
Methes Energies
Canada
Recycled oils 5
Existing Springfield,
Ontario
Noroxel (Methes
Energies)
Recycled oils 5
Existing St-Jean d'Iberville,
Quebec
QFI Biodiesel
(Methes Energies)
Recycled oils 5
Existing Sombra, Ontario Methes Energies
Canada
Recycled oils 50
Existing Delta, BC Consolidated
Biofuels
Yellow grease 11
Existing Foam Lake,
Saskatchewan
Milligan Bio-tech Canola oil 20
Existing Montreal, Quebec Rothsay Animal fats,
recycled oils
45
Existing Delta, BC City-Farm Biofuel
Ltd.
Recycled
oil/tallow
50
Existing Lethbridge, Alberta Kyoto Fuels Animal fats,
recycled oils
66
Existing Hamilton, Ontario BIOX Corporation Animal fats,
yellow grease
67
Existing Welland, Ontario Great Lakes
Biodiesel
Canola,
soybean
170
Coming
Online Fall of
2013
(West)
Lloydminister,
Alberta
Archer Daniels
Midland
Canola 265
TOTAL: 759
Source: Attempted to contact each respective company. Cross-checked data with Canadian
Renewable Fuels Association and the Global Biofuels Center; forecasted production capacity for
2014
